Emirates NBD delivered a record profit of AED19 billion ($5.2 billion) for the first nine months (9M) of 2024, which is 9% higher YoY, thanks to loan growth, a low-cost funding base, strong transaction volumes and substantial recoveries. 

 

Over AED100 billion in new loans have been provided to customers in 2024 across the bank’s network. Income grew 7% in the third quarter of 2024, driven by strong loan growth, improving margins and higher fee & commission income.  

 

NBD’s Digital Wealth platform has propelled Group Assets Under Management above $40 billion as the product offering expanded to include fractional bonds & sukuks, equities and mutual funds. 

 

Total income

Total income went up to AED32.9 billion on strong loan growth coupled with an excellent stable, low-cost funding mix. Substantial loan growth with lending up 9% in 9M’24, delivered impressive growth across all business units and international locations, enabling upward revision in loan growth guidance. 

 

The bank’s deposit mix is a key strength, growing AED60 billion in the first nine months of 2024, including a AED33 billion increase in Current & Savings Accounts. Net interest margin improved to 3.75% in the third quarter of 2024 as DenizBank NIMs continued to improve on favourable loan pricing and stable funding costs.

 

The  bank’s digital wealth volumes rose fivefold in 2024 as offering expanded to include mutual funds, in addition to fractional bonds & sukuks and global & local equities. Assets Under Management across the group now exceed $40 billion, reflecting ongoing success of the bank’s wealth management strategy. 

Looking to the future, Emirates NBD is transforming into a data-first, digital-focused and environmentally responsible regional powerhouse.

 

Strategically positioned  

Hesham Abdulla Al Qassim, Vice Chairman and Managing Director said: “Emirates NBD’s profit surged to a remarkable AED19.0 billion for the first nine months of 2024, as the group is strategically positioned to benefit from regional growth and consumer confidence. The group’s solid balance sheet supported a 9% increase in lending, with more than AED100 billion in new loans provided throughout the region in 2024.

 

“We are delighted with our expansion into Saudi Arabia, as the 19 branches and 59 dedicated ATMs drove an impressive 49% loan growth in the first nine months of 2024.”    

 

Shayne Nelson, Group Chief Executive Officer said: “Income grew 7% in the third quarter of 2024, driven by strong loan growth, improving margins and higher fee & commission income. We expanded our Digital Wealth offering to include mutual funds, in addition to fractional bonds & sukuks and global & local equities, which helped propel the Group’s Assets Under Management to above $40 billion.

“All business units achieved an outstanding performance with record retail lending, a one-third market share of UAE credit card spend and Corporate lending originating AED70 billion of gross new loans as it leverages the group’s regional presence.”

 

Fee and commision income

Patrick Sullivan, Group Chief Financial Officer said: “Fee and commission income continues to grow strongly, benefiting from the investment in digital, product enhancements and straight through processing. The group’s net interest margin improved to 3.75% in the third quarter of 2024 as DenizBank NIMs increased on favourable loan pricing and stable funding costs. 

 

“Loan growth guidance was revised upwards on continued strong regional demand while the cost of risk guidance was prudently revised due to the impact of higher interest rates. The group’s exceptional performance and strong balance sheet was recognised by both Moody’s and Fitch, with positive rating action on both Emirates NBD and DenizBank.” -- TradeArabia News Service